Diversification is often a poor motive for mergers because: vertical integration is rarely successful. investors can diversify on their own account. it does not produce economies of scale. O the increase in taxes overcomes any gains in earnings.
Diversification is often a poor motive for mergers because: vertical integration is rarely successful. investors can diversify on their own account. it does not produce economies of scale. O the increase in taxes overcomes any gains in earnings.
Chapter15: International Corporate Governance And Control
Section: Chapter Questions
Problem 9QA
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